Two years ago, Gross, now 69, told the New York Times, “Mohamed is my heir apparent.”

Allianz named Douglas Hodge, managing director and currently chief operating officer of the firm, as its next chief executive. The firm also named managing directors Andrew Balls and Daniel Ivascyn as deputy chief investment officers.

The news comes after Pimco had a record $41.1 billion in outflows last year, according to the investment research firm Morningstar. Pimco till managed $1.97 trillion in assets as of September 30, 2013 according to its website.

“Mohamed El-Erian helped set the strategic direction of the company and it certainly makes a difference when someone who is used to making such headlines leaves a company,” said Jeff Tjornehoj, senior research analyst at Lipper. “We don’t know what kind of impact it will have yet but it will have an impact.”